Markets
Bitcoin rises to $66,000 level, market capitalization reaches $1.309 trillion; Where are the prices going?
Bitcoin prices demonstrated resilience on Friday, returning from the previous day’s decline. This rebound, coupled with positive inflows into spot bitcoin exchange-traded funds (ETFs) for the fourth day in a row, signals a promising trend for investors.
While Bitcoin recovered, other crypto tokens including Solana, Cardano, Polkadot and Avalanche also showed strength, recording gains of up to 4%. However, the global cryptocurrency market value suffered a slight drop of 0.29%, reaching approximately $2.38 trillion in the last 24 hours.
The world’s largest cryptocurrency has remained firmly within a tight $60,000 to $70,000 trading range that has persisted over the past two months, finding few triggers to break out due to a tepid appetite for risk.
Read too: SEBI recommends regulators oversee crypto trading, RBI still sees ‘macro risk’
Bitcoin is set for a robust week amid growing hopes of rate cuts from the US Fed. Following today’s surge, Bitcoin has made significant gains over the past seven days, recovering from a low of $60,000 last week.
The cryptocurrency is up approximately 8% from last Friday’s lows, driven mainly by a weaker dollar and indications of easing inflation in the US.
“Bitcoin surpassed the $65,000 mark, showing a remarkable 7% gain in 24 hours. In the past, such a leap would have attracted many newcomers to Web3. However, the current scenario suggests that newcomers are looking for more than just price fluctuations. Maybe it’s time for the ecosystem to prioritize easy-to-use apps. While pricing may attract investors, tangible use cases attract a wider audience,” said Nischal Shetty, co-founder of Shardeum.
Bitcoin’s market capitalization has soared to $1.309 trillion, and its market dominance now stands at 54.69%, as reported by CoinMarketCap. During this period, BTC trading volume decreased by 27.4%, totaling $30.9 billion.
“Bitcoin is in the middle of the bull cycle. Its market capitalization is growing faster than its realized capitalization, a trend that typically lasts about two years. If this pattern continues, the bull cycle could end in April 2025. Another reason for the momentum could be ETF inflows in May, which have already offset April outflows,” said Avinash Shekhar, co-founder and CEO of Pi42.
Read too: Stage set for Binance and Kucoin to return to India
Where are Bitcoin prices heading?
According to market experts, in the short term, Bitcoin’s price trajectory could be influenced by technical indicators, market sentiment and the actions of institutional investors.
Additionally, the appointment of former BlackRock executive Salim Ramji as Vanguard’s new CEO has sparked speculation that the investment giant could embrace crypto.
“Analysts are wondering whether Vanguard, under the leadership of an ETF veteran from crypto-friendly BlackRock, would finally turn bullish on Bitcoin. This increase also followed the revelation from 13F filings that 1,028 companies with more than $100 million in assets under management collectively owned $11 billion worth of Bitcoin as of March 2024, with Millennium Management emerging as the largest holder with $2. billion,” said Rajagopal Menon, vice president of WazirX. Live mint.
Read too: Why Africa is the next frontier in crypto.
Looking ahead, the long-term outlook for Bitcoin remains tied to its fundamentals, including its limited supply and its growing adoption as a store of value and hedge against inflation, according to Siddharta Gupta, senior vice president of business and CoinDCX strategic alliances.
“The approval of the ETF in the US and Hong Kong and the ETN in London reinforced their legitimacy and price stability over time. However, it is crucial to be aware of potential risks and uncertainties, including regulatory developments, technological advances and macroeconomic changes. While historical trends and halving cycles provide valuable insights, the future trajectory of Bitcoin prices will likely be shaped by a complex interplay of factors, making accurate predictions challenging,” said Gupta.
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